Consider the market for university economics professors.Because of the dot.com bust of 2000 and the recession in the U.S.economy,the opportunity cost of going to graduate school to get a Ph.D.in economics decreased for many individuals.It generally takes about five years to get a Ph.D.in economics.Thus,holding all else constant,what likely will happen to the equilibrium quantity of university economics professors in and around 2006?

Question

Quizplus · Accepted Answer

The decrease in opportunity cost of obtaining a Ph.D. in economics would have increased the number of individuals pursuing this career path. This would have increased the supply of economics professors. As a result of an increase in supply, the equilibrium quantity is likely to increase.

Consider the Market for University Economics Professors